The Home Office will need to provide £1.71m worth of funding if a fully-operational self-regulatory scheme is to be introduced by Autumn 2005, according to the key findings of the Institute of Fundraising’s (IoF) initial business plan for the scheme.

In addition to this, charities will have to pay between £30 and £1,500, depending on the size of the organisation, in order to become members of the scheme, which is not predicted to break even until 2009.

Plans to introduce a Regulation of Fundraising Unit (RFU) have been under discussion for some time. It is hoped that self-regulation will improve the standard at which the profession operates and repair some of the damage to public trust caused by criticism of face-to-face fundraising.

Under current proposals, the RFU will be an independent team dedicated to administering the scheme. Another independent body, comprising representatives from within the sector, will oversee the development of fundraising standards and the management of the complaints procedure.

Benefits for those who sign up to self-regulation will include help and guidance from the RFU, use of the logo and access to an independent, donor-focused complaints structure. Membership is not linked to membership of the IoF or any other organisation.

Simon Hebditch, chair of the Steering Committee and executive director of external affairs at the Charities Aid Foundation (CAF), said that the new system will need to be strict enough to instil the highest standards in fundraising practice: “In order for self-regulation to success, it is vital that the scheme engages fundraisers and fundraising organisations across the sector. But at the same time, it must be a robust regulatory scheme with real penalties attached – not just a paper exercise. The public must be confident that any complaints they have will be dealt with swiftly and fairly.”

A full business plan containing all the key findings will be presented to the Home Office in February 2005. More information on the proposed scheme is contained within the report, The Self-Regulation of Fundraising, which is available from CAF on 01732 520000.